Revenue sharing leads to jump in SMS.

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Hambone
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Revenue sharing leads to jump in SMS.

The new revenue sharing model between the CFL & CFLPA is reaping its first rewards for the players with a significant boost to the SMS. The 2025 SMS was scheduled to rise $125K from $5.525M to $5.650M. The bump from revenue sharing will instead put it up to $6,062,635, an overall increase of $537,635 or 9.7% from 2024. I wonder if the clubs entered the communications window armed with that knowledge. If they didn't know the actual number down to the penny they must have known a ballpark number. All in all great news for everybody.

https://www.cfl.ca/2025/02/05/2025-sala ... ue-growth/
Last edited by Hambone on Wed Feb 05, 2025 9:42 am, edited 1 time in total.
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B.C.FAN
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Re: Revenue sharing leads to jump in SMS.

Wow, that’s an increase of $537,000 from last year. It hasn’t seemed to affect top-end salaries but it should help teams sign mid-level vets.
don corleone
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Re: Revenue sharing leads to jump in SMS.

Guessing part of it was the revenue sharing of the Grey Cup. when 2024 was the first year players were are part of that and this is how it gets paid out rather than money in their pocket. Seems like small steps but at least headed in the right direction.
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B.C.FAN
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Re: Revenue sharing leads to jump in SMS.

Dave Naylor and Farhan Lalji have published an informative Q and A on how the higher salary cap was determined and communicated to teams. It appears teams were not generally aware of the increase before setting their salary budgets.

https://www.tsn.ca/cfl/naylor-and-lalji ... -1.2247496
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SammyGreene
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Re: Revenue sharing leads to jump in SMS.

B.C.FAN wrote: Wed Feb 05, 2025 4:33 pm Dave Naylor and Farhan Lalji have published an informative Q and A on how the higher salary cap was determined and communicated to teams. It appears teams were not generally aware of the increase before setting their salary budgets.

https://www.tsn.ca/cfl/naylor-and-lalji ... -1.2247496
Winnipeg Sun article backs this up saying the Bombers negotiated with Lawler, Ford and others not knowing the additional $400,000 plus of cap space was in play. Suggests the Bombers can now match the Tiger-Cats offer and perhaps didn't need to ask Schoen to take such a pay cut. Of course Hamilton could offer Lawler even more.This article is saying he is getting $300,000 and the Bombers best offer was $225,000.
Could be some interesting days ahead.

https://winnipegsun.com/sports/football ... ing-lawler
don corleone
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Re: Revenue sharing leads to jump in SMS.

Odd timing for the extra money to show up this week but who knows.

What it does indicate is strong support for the league with good profits. They won't be able to use the old sob story of no money to pay players.

Maybe the Bombers match on Dobson but I don't see them going after Lawler at his price. Toronto might also revisit a few of the players agreed to terms with Edmonton. I think the Lions are good although Nathan Rourke may want some back from the $125,000 he just gave up.
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Hambone
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Re: Revenue sharing leads to jump in SMS.

That piece from Naylor and Farhan does a good job of explaining the timing. With the CFL's fiscal year end not happening until Dec 31 it wasn't until past mid January before the league finalized the numbers to come up with the value available from revenue sharing. That would mean probably sometime week of Jan 20. Those who have been around corporate financials would know year-ends are a longer process than a typical month-end. Looks like the value of the revenue sharing pool was presented to the CFLPA a few business days later. Pumping that value entirely into the SMS was only one option for the PA. Discussions between the CFL and CFLPA ensued with the PA finally making their decision this week.
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don corleone
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Re: Revenue sharing leads to jump in SMS.

Hambone wrote: Thu Feb 06, 2025 9:00 am That piece from Naylor and Farhan does a good job of explaining the timing. With the CFL's fiscal year end not happening until Dec 31 it wasn't until past mid January before the league finalized the numbers to come up with the value available from revenue sharing. That would mean probably sometime week of Jan 20. Those who have been around corporate financials would know year-ends are a longer process than a typical month-end. Looks like the value of the revenue sharing pool was presented to the CFLPA a few business days later. Pumping that value entirely into the SMS was only one option for the PA. Discussions between the CFL and CFLPA ensued with the PA finally making their decision this week.
Bizarre that the CFLPA put it all into the cap that will benefit primarily the high end players.

It's a great first step.
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